Many firms are striving to improve their environmental positions by presenting their environmental efforts to the public. To do so, they are applying green marketing strategies to help gain competitive advantage and appeal to ecologically conscious consumers. However, not all green marketing claims accurately reflect firms’ environmental conduct, and can be viewed as ‘greenwashing’. Greenwashing may not only affect a company’s profitability, but more importantly, result in ethical harm. Therefore, this research extends past greenwashing studies by examining additional influences on (...) and outcomes of perceived greenwashing. To do so, we conducted two studies, an interview study with consumer product and consulting firms, as well as an experiment examining consumers interacting with a company website. For these studies, we used multiple methods, including interviews, questionnaires, and neurophysiological techniques. We found that perceived greenwashing relates not only to environmental and product perceptions, but also to consumers’ happiness while interacting with the website. We also found that website interactivity relates to perceived greenwashing, environmental and product perceptions, and to the amount of interaction with the website. We conclude by discussing managerial and ethical implications for research and practice. (shrink)

Sustainable products offered in today’s marketplace are labelled with product-related green attributes or non-product-related green attributes. The current research investigates consumers’ inferences about a product’s functional quality when its core attributes are green and when its peripheral attributes are green. Four experimental studies and an internal meta-analysis show that there is a sustainability liability effect in strength-dependent categories, and a sustainability asset effect in gentleness-dependent categories. Our research contributes to the current understanding of how consumers make inferences about product quality (...) when contemplating different types of green attributes. The findings have implications for how strength-dependent and gentleness-dependent products should be labelled as green. (shrink)

Business Ethics: A European Review, EarlyView.

The practice of ‘greenwashing’ may be characterized as the fabrication of green claims by organizations to portray a positive image. Greenwashing has not been examined in the United Arab Emirates, and the fashion sector is considered the second largest consumer of harmful chemicals, excessive water use, and non-compliant waste management practices behind the oil and gas sector. Using in-depth semi-structured interviews with fast fashion consumers in the UAE, an exploratory qualitative inquiry was conducted with a focus on the ‘seven sins (...) of greenwashing’ and ‘competitive altruism’ theories and the consumer perceptions of green claims made by major apparel manufacturing and retail firms in the UAE were investigated. A conceptual framework was developed to better understand the nature of corporate altruistic behavior and perceived advantages of green initiatives. The exploratory qualitative inquiry used for this study provided a great opportunity for gathering detailed information on consumer perceptions of greenwashing practices in the UAE. Future research and statistical representation are needed to cross reference the data and test the framework suggested here. (shrink)

To make a business case for corporate sustainability, firms must be able to sell their sustainable products. The influence that firm engagement with non-governmental organizations may have on consumer adoption of sustainable products has been neglected in previous research. We address this by embedding corporate sustainability in a cosmopolitan framework that connects firms, consumers, and civil society organizations based on the understanding of responsibility for global humanity that underlies both the sustainability and cosmopolitanism concepts. We hypothesize that firms’ sustainability engagement (...) and their NGO engagement influence consumer adoption of sustainable products. Empirically, we investigate the adoption of sustainable Eco-circle products made from recycled fibers marketed by Li Ning, a China-based global sportswear brand. We apply a stepwise regression approach to test our hypotheses with paper-and-pencil survey data from 217 Chinese consumers. We find adoption to be positively associated with consumers’ sustainability attitude but not with firms’ sustainability engagement. For firm–NGO engagement, these relationships are reversed: Adoption is positively associated with firm–NGO engagement, but not with consumers’ related attitude. Our results present a picture of the Chinese context in which there is a business case for corporate sustainability if firms’ words about sustainable product strategies are supported by signals from civil society about firm deeds. The results imply that in a Chinese context, firms need to be particularly aware of the role of NGOs when hoping to be rewarded for sustainability. (shrink)

The sizeable theoretical and empirical literature on corporate social responsibility and business ethics in Western, developed economies indicates that the topic has attracted significant interest from academics and practitioners. There is, however, less evidence of the practice of CSR and business ethics in non-Western, transition economies, as insufficient attention is paid to the contextual specifications and underlying processes that may lead to different versions of CSR. Therefore, this paper examines the practice and sense-making of CSR and business ethics from the (...) perspective of the fertile and under researched post-communist context of Central and Eastern Europe, to join the growing academic debate about the impact of cultural and historical traditions on the practice and sense-making of CSR and business ethics in non-Western contexts. The study adopts a particular focus on the post-communist and under researched context of Bulgaria where CSR is still a relatively new phenomenon. By following an exploratory research design and by collecting qualitative data from 34 executives employed by public and private sector organisations in Bulgaria, the study finds that the local business environment is composed of a complex mix of various institutionalised pressures and challenges that predispose organisations to adopt a particular approach to CSR, ethical misconduct and CSR-washing. Apart from the significant contributions related to the practice, understanding and contextualisation of CSR in non-Western countries, the study also identifies challenges of business ethics in transition economies and adds depth to the emerging literature on CSR-washing by proposing a model for neo-communist CSR-washing. The study also offers contributions for practitioners and policy-makers. (shrink)

We investigate the impact of perceived greenwashing on customer satisfaction. Unlike prior research that largely examines customer perceptions associated with irresponsible behavior, we focus on cases where firms overcommit and/or do not deliver on promised socially responsible actions. We theorize that this type of greenwashing is associated with lower customer satisfaction because customers perceive greenwashing through the lens of corporate hypocrisy. Using data from the American Customer Satisfaction Index (ACSI) for U.S. companies during the period 2008–2016, we document a negative (...) link between perceived greenwashing related to green product innovation (GPI) and the ACSI index. We demonstrate that this effect is primarily triggered by corporate policies exceeding the corresponding implementation actions and not by lower levels of implementation. We also show that a firm’s capability reputation mitigates the negative effect of greenwashing on customer satisfaction. Moreover, we conduct an experiment and provide evidence confirming that GPI greenwashing is in fact perceived by customers as corporate hypocrisy. (shrink)